Pi Network, Upgrade Successful but Price Falls... Ignored by the Market

▲ Pi Network (PI)/ChatGPT generated image

Despite the positive news of an upgrade, Pi Network (PI) has deviated from the market's upward trend, continuing its decline for the fourth consecutive week.

According to crypto media outlet Coingape on April 14 (local time), Pi Network recorded a 1.2% drop to $0.164 in the last 24 hours, showing a trend contrary to the overall virtual asset market, which saw its market cap increase by more than 4.5%. The Pi Network team announced the completion of the Protocol 21 upgrade, which focuses on improving network stability and scalability, but limited buying interest has prevented a price rebound.

The Pi Network team has requested system updates from node operators and has begun preparing for the subsequent V22 upgrade. V22 is designed to strengthen smart contract capabilities, aiming to expand developer participation and build a decentralized application ecosystem. If network utilization expands, the token demand base is expected to strengthen.

The technical trend remains in a bearish phase. Pi Network has been on a downtrend since March 13, falling from $0.271 four weeks ago to $0.164. The current price is testing the Fibonacci 38.2% retracement level of $0.159, and a break below this level could open up a further decline to the early February low of $0.13. A death cross, where the 50-day moving average has fallen below the 100-day moving average, also signals downward pressure.

However, changes are being detected in the money flow indicators. The MFI index is showing an upward trend with higher lows, and a bullish divergence, where price and MFI move in opposite directions, has formed. This is interpreted as a gradual easing of selling pressure and an inflow of buying at lower prices.

Pi Network is currently in a phase where a discrepancy between technical improvement achievements and market reaction persists. The key variable will be whether the plan to expand the ecosystem through the V22 upgrade actually leads to increased demand.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*